Analysis of Tax Court Decision on the Submission of Taxable Goods in Batam Island as Free Trade Zone Reviewed from Tax Policy and Compliance Cost (Case Study PT XYZ)
Tupa Andri Armando (a*), Haula Rosdiana (b**)
a) Faculty of Administrative Sciences, University of Indonesia
Gedung Mochtar Lantai 3
Jalan Pegangsaan Timur No. 16 Jakarta 10320
*tupaandriarmando[at]gmail.com
b) Faculty of Administrative Sciences, University of Indonesia
Gedung Mochtar Lantai 3
Jalan Pegangsaan Timur No. 16 Jakarta 10320
**haula.rosdiana2013[at]gmail.com
Abstract
Fiscus assume that the surrender of Goods in Location specified by PT Pertamina EP in customs area of RI as Surrender of Taxable Goods, with reason that the Agreement is signed by Head Office of PT XYZ with PT Pertamina EP in Jakarta. Therefore, Head Office should publish Tax Invoice for each Surrender of Taxable Goods transaction to PT Pertamina EP. Consequently, Tax Authority issued Tax Bill to PT XYZ based on Article 14 paragraph (4) of KUP Law because PT XYZ did not issue Tax Invoice. Whereas According to Taxpayer, Referred to Article 1A paragraph (1) of VAT law, Transfer of Right over Taxable Goods had been shifted earlier by Branch Office to PT Pertamina EP in Batam Island as Free Trade Zone. Based on Article 12 paragraph (1) of VAT Law, Head Office and Branch Offices are separate entities in fulfilling tax obligations. However, based on Tax Policy Article 4 of Government Regulation Number 10 of 2012, Entrepreneurs in Batam do not need to be confirmed as Taxable Entrepreneur. Therefore, Branch Office of PT XYZ did not issue a Tax Invoice.
Keywords: Dispute, Decision, Tax Court, Tax Appeal, Tax Policy
Topic: Kebijakan Publik